Top companies with women on boards perform better, research finds

By Judith Ireland

UpdatedApril 23, 2015 — 10.43amfirst published at 12.15am

Top Australian companies with at least 25 per cent female boards perform more than 7 per cent better than those with all-male boards, according to research that will boost the push to improve corporate diversity.

Analysis of ASX200 companies released on Thursday shows that, since 2010, investors would have done better if they had put their money in companies that had at least one-quarter female boards, compared with those with less gender-diverse and all-male boards.

The research, by the Centre for Gender Economics and Innovation and Infinitas Asset Management, found companies with gender-diverse boards performed an average of 2 per cent better per year than ASX200 companies generally. They performed more than 7 per cent better per year than companies with no women on their boards.

The level of gender diversity in top companies is "frustratingly low", the research finds, but is growing. As of March 2015, there were 63 companies that met the 25 per cent threshold, up from 15 in mid-2010.

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The level of gender diversity in top companies is "frustratingly low", research has found.Credit:Daniel O'Brien

Centre for Gender Economics and Innovation chairwoman Susanne Moore said women were often thought of as a "cost" in the corporate environment in terms of such issues as job flexibility and maternity leave. But she said women could have a positive impact on the bottom line instead.

"Common sense would tell you that if you have a more diverse group sitting at the decision-making table, then you're going to get more diverse ideas," she said.